Gail, HPCL join hands for oil, gas exploration
New Delhi, November 16
GAIL (India) Ltd and Hindustan Petroleum Corp Ltd today joined hands to scout for oil and gas exploration and production opportunities in India and abroad.
The two state-run companies have signed three pacts, one of which is an
MoU for jointly participating in exploration activities in India,
Central, South and South-East Asia, West Asia, Africa, Australia and
Russia.

BHEL to set up 1,000-MW plant in Sudan
New Delhi, November 16
BHEL has been selected for a $500 million 1,000 MW turn-key power project in
Sudan, the second largest Indian investment after the ONGC in the African nation.

Govt to amend Forward Contracts Act
New Delhi, November 16
In a move to boost the futures trade in the country, the government proposes to amend the Forward Contracts (Regulations) Act, 1952, to enable trading in new products like weather and rainfall indices which would benefit the farmers by affording additional hedge cover against the vagaries of weather.

Motorola to assemble handsets in India
New Delhi, November 16
Global telecom equipment major Motorola today announced its manufacturing plans for India, as part of which it will locally assemble and roll out its sub-Rs 2,000 model ‘C115’ next month.
“Assembly in India is the first step in a multi-phased manufacturing
strategy deployed by the company.

Dance troupe performs at the launch of Motorola’s “Made-in-India” suite at a press conference in New Delhi on Wednesday. — A Tribune photograph

Mahindra-BT buys Axes for $54 million
Bangalore, November 16
Rolling over to Research and Development and product engineering space, Mahindra-BT
today announced the acquisition of Axes technologies for an all-cash deal of $54 million.

Former Miss World Diana Hayden promotes the maiden flight of American Airlines from Delhi to Chicago on Wednesday. Air Sahara today entered the American airline market through a code sharing arrangement with American Airlines (AA). The arrangement is to formally take off with AA’s inaugural Chicago-New Delhi non-stop service. The two airlines have agreed on a reciprocal frequent flyer programme. Apart from this, both AA and Air Sahara will be putting on their codes in India, the transatlantic flights between New Delhi and Chicago, and beyond. — Tribune
photo by Mukesh Aggarwal

Citizen Watches to expand in India
Chandigarh, November 16
Japan-based Citizen Watches has decided to expand its market in India by opening 75 new exclusive showrooms in the country in the next three years by investing $ 4 million annually, a senior company official said here today.

Boeing answer to Airbus’ A-380
New York, November 16
Boeing has announced plans to build a new stretch version of its 747 jumbo jet in a move to compete head-on with Airbus and its upcoming superjumbo A380 aircraft.

Bharat Forge eyes company in China
New Delhi, November 16
Bharat Forge Ltd, the flagship company of the Kalyani Group, is setting eyes on China for acquisitions following its successful takeovers in the USA and Europe.

Airbus inks biggest deal with China
Beijing, November 16
Airbus signed a $ 500m deal with China, the biggest so far, between the European aircraft maker and the Communist giant, for expanding the A-320 wing production, the state media reported today.

Pfizer drug
Washington, November 16
Pfizer has said it has discovered an anti-smoking drug that mimics nicotine and is considerably more effective than zyban, the only prescription anti-smoking medicine available on the US market.

22 Louis Philippe stores planned
Mumbai, November 16
Madura Garments, a division of newly merged entity Aditya Birla Nuva, will invest up to Rs 60 crore in the next two years in rolling out at least 22 flagship stores for its premium menswear brand, Louis Philippe.

New Delhi, November 16
GAIL (India) Ltd and Hindustan Petroleum Corp Ltd today joined hands to scout for oil and gas exploration and production opportunities in India and abroad.

The two state-run companies have signed three pacts, one of which is an MoU for jointly participating in exploration activities in India, Central, South and South-East Asia, West Asia, Africa, Australia and Russia.

GAIL and HPCL would jointly prepare a “blueprint” for E&P business model and bid for blocks under NELP and Coal Bed Methane rounds in India as well as look for overseas blocks, GAIL Chairman and Managing Director Prashanto Banerjee said after signing the MoU with HPCL Chairman M.B. Lal.

The move is part of the two companies’ plans to diversify in the upstream activity and follows the tie-up between Indian Oil and Oil India Ltd, which had recently won a block in Libya.

Mr Lal said the MoU was an extension of the cooperation between the two companies in E&P. GAIL and HPCL had last month bid for two blocks in Australia along with the Gujarat State Petroleum Corporation and Oilex NL of Australia.

The two firms also signed an agreement to form a joint venture for city gas distribution projects in Madhya Pradesh and another MoU for city gas projects in Rajasthan and Gujarat. The agreements for city gas envisage supplying piped natural gas to domestic, commercial and industrial consumers and compressed natural gas and auto LPG to automobiles.

HPCL to buy stake in Shell’s terminal

Meanwhile, HPCL said today it was in advanced stages of talks with Shell India for picking up a stake in its Hazira LNG terminal in Gujarat and a deal was possible this fiscal.

“We are talking to them for picking up stake in Hazira. The picture would be clearer by January and a deal is possible by the end of this fiscal,” HPCL Chairman and Managing Director M.B. Lal told reporters.

Mr Lal said HPCL was in talks with Shell for the equity but there were various issues such as valuation of the stake and the LNG supply that needed to be looked into.

HPCL is believed to be interested in acquiring a 25 per cent stake in the terminal. Mr Lal, however, refused to specify but said it was a good opportunity for the government-run refining and marketing company as it did not have an presence in the LNG business so far.

Shell is unlikely to offload more than 25 per cent since its own equity would then fall to less than 51 per cent.

New Delhi, November 16
“There is no statistical evidence to show poverty has increased,” said Finance Minister P. Chidambaram, addressing the Economic Editors Conference here today.

He was responding to a question whether social tension was rising due to economic policies as manifested in the recent Naxalite violence.

The minister, as usual, painted a rosy picture of the economy, highlighting the increased stress on the social sector. Questions, specially from non-urban participants, focussed on growing disparities.

“With growth there is a chance of equity and justice,” argued Mr Chidambaram, adding that there is a broad agreement that “this model of development is better suited for growth”.

Mr Chidambaram, however, admitted to regional disparities, but observed inequalities existed even in China and Europe. “The solution is not to punish good performance, but ensure good governance and better utilisation of resources in the states lagging behind.” The Centre is already “partial to backward states,” he added.

The two programmes touted to promote the UPA government’s social sector agenda and reduce poverty — the rural employment guarantee plan and Bharat Nirmaan — have no concrete sources of funds.

All that the FM hoped was “resources will be thrown up by a growing economy and higher tax revenue”. With the possibility of funds from PSU divestment nipped by differences among the UPA partners, an optimistic FM said: “We have secured the Left consent for disinvesting in profitable non-navratnas.”

When one participant drew the FM’s attention to the growing debt, Mr Chidambaram noted the “debt is increasing because government borrowings are rising. The way to correct the fiscal imbalance is to bring down the fiscal deficit to below 3 per cent of the GDP and the revenue deficit to zero”.

Asked if his ministry was probing companies named in the Volcker report, the Finance Minister refused to disclose anything on the nature of investigation, saying we have sent notices to the companies to seek certain information.

Mr Chidambaram’s list of achievements was long and riddled with statistics, marked at times with “I propose…” This provoked a backbencher to comment: “Is he making a Budget speech?” All sectors of the economy, according to him, are growing well barring mining and electricity.

Yet he admitted “many gas-based plants are lying idle for lack of enough gas”. To check the oil-led uptrend in inflation, he promised intervention with monetary steps if the fiscal situation so demanded.

But he ruled out a similar intervention in the recent weakening of the rupee against the US dollar.

When a participant began his question with “industries are closing down…” the FM cut him short to ask him to give an example. When the questioner could not, Mr Chidambaram suggested: “You think of it, I will return to you”.

Mr Chidambaram was persistent in tracking mobile users who did not switch them off despite requests. One participant on the right tried to attract the FM’ attention by quipping: “You look too much towards the Left”. Mr Chidambaram, not to be left behind, concluded by saying “The weather is kind. You (economic editors) should also be kind.”

New Delhi, November 16
BHEL has been selected for a $500 million 1,000 MW turn-key power project in
Sudan, the second largest Indian investment after the ONGC in the African nation.

The project would be set up in White Nile state in central Sudan, said Sudan’s Ambassador, Mr Abdalmahmood A. Mohammad, at the third Indo-Arab Conference organised by Assocham here today.

Other than equity participation in three exploration blocks in
Sudan, the ONGC had completed a 741-km oil products pipeline project in the country.

“Technical and financial discussions are on to finalise the turn-key project agreement for power generation and transmission which will help Sudan meet half its power needs,” he said.

Mr Rakesh Kumar, Special Secretary, Ministry of External Affairs, said: “ The ministry has given its clearance to BHEL to set up the gas-based power project in Sudan.” He said the government had extended a line of credit worth $110 million to Sudan which has been fully utilised. Further line of credit would be extended for other projects.

Sudan’s Ambassador said India would contribute $350 million for this power project, estimated to cost $500 million, under the government’s line of credit to Sudan. The remaining cost of the project would be shared by the Sudanese Government.

He highlighted the fact that nearly 15 per cent of India’s trade with the Arab world and nearly two thirds of India’s energy requirements were met from the region.

New Delhi, November 16
In a move to boost the futures trade in the country, the government proposes to amend the Forward Contracts (Regulations) Act, 1952, to enable trading in new products like weather and rainfall indices which would benefit the farmers by affording additional hedge cover against the vagaries of weather.

Amendments will also pave the way for introduction of options contracts. Once carried through it will strengthen and restructure Forward Markets Commission (FMC) and make FMC an autonomous and independent organisation.

“The regulator will have enhanced regulatory and penal powers in the amended Act,” Union Minister for Consumer Affairs Sharad Pawar informed members of the Parliamentary Consultative Committee attached to his ministry.

Mr Pawar said the amendments would also provide for the setting up of a forward markets appellate tribunal on the lines of the Security Appellate Tribunal (SAT) set up under the SEBI Act.

Futures trading on commodities have been encouraged to help price discovery and risk management so that farmers derive benefits of these markets, he said.

The Minister also informed the members that the proactive decisions taken by the government along with the setting up of the three national exchanges have resulted in unprecedented growth in commodity futures markets.

During 2004-05, the total value of commodity futures trade has been Rs 5.71 lakh crore as compared to Rs. 1.29 lakh crore during 2003-04 and Rs. 66,530 crore in 2002-03. The trade value during 2004-05 has increased by 341 per cent. During the first six month of the current financial year, trade value has already crossed the Rs 7.80 lakh crore mark.

He further said the progress of the online national exchanges, National Multi-Commodity Exchange of India Limited (NMCE), Ahmedabad, National Commodity & Derivative Exchange (NCDEX), Mumbai, and Multicommodity Exchange
(MCX), Mumbai, has been very rapid.

New Delhi, November 16
Global telecom equipment major Motorola today announced its manufacturing plans for India, as part of which it will locally assemble and roll out its sub-Rs 2,000 model ‘C115’ next month.

“Assembly in India is the first step in a multi-phased manufacturing strategy deployed by the company. The assembling of Motorola ‘C115’ handset will be done by one of the MNC partners for Motorola in India,” Allen Burnes, Corporate Vice-President, Motorola Device Business, said here.

‘C115’ is designed for mass market in India, we are doing our part to leverage and create opportunities both for India and for Motorola, he said. It will have a ‘Made in India’ label.

The company, however, did not disclose the investment needed in the assembling of the handset. It would take the same approach of going through the partner and then foray into manufacturing, if the need arises.

“We will do what is required to meet the BSNL tender norms and with a partner-approach we would do the 30 per cent value addition in India till we manufacture completely in India should demand arise.

In a move to drive rapid expansion and brand presence, Motorola has entered into a strategic relationship with Bharti Teletech to use their wide distribution and retail network.

The MNC today also launched its high-end ‘L6’ mobile handsets in India, which happens to be the first market to have the model.
— PTI

Bangalore, November 16
Rolling over to Research and Development and product engineering space, Mahindra-BT (MBT) today announced the acquisition of Axes technologies for an all-cash deal of $54 million.

Announcing the deal to newspersons here, MBT Managing Director and CEO Vineet Nayyar told newspersons here that the acquisition would be complimentary to MBT’s strong presence and capabilities in the telecom service provider space.

Axes Technologies, with a strong client base in the United States led by Alcatel, was expected to close the current fiscal with revenue of $30 million.

Chandigarh, November 16
Japan-based Citizen Watches has decided to expand its market in India by opening 75 new exclusive showrooms in the country in the next three years by investing $ 4 million annually, a senior company official said here today.

Citizen has decided to increase its exclusive showroom chain ‘First Citizen’ from the present 24 to 100, Managing Director of Citizen Watches H. Nakazaki told reporters here this evening. He said at end of the current financial year Ludhiana, Amritsar and Jalandhar would be added.

The company expects a turnover between Rs 60 and 65 crore during the current financial year as against around Rs 45 crore in the last fiscal, Mr Nakazaki said, adding that in terms of volumes they planned to increase the sale by around 40 per cent of the 1,50,000 units sold last year.
— PTI

New Delhi, November 16
Agilent Technologies Inc today announced a $ 14.5 million order with India’s primary communications service providers VSNL and Tata Teleservices Ltd (TTSL).

The companies will use the Agilent OSS solutions to form their centralised network management system (CNMS) located in Mumbai.

The CNMS will manage the service providers international and nationwide telecommunications services, ensuring high quality of service and optimal customer satisfaction while streamlining network operations.

Coupled with partner products, CNMS will be one of the most comprehensive end-to-end OSS solutions in the industry, covering fault, performance, configuration, security, inventory, trouble ticketing and work flow management.
— UNI

New York, November 16
Boeing has announced plans to build a new stretch version of its 747 jumbo jet in a move to compete head-on with Airbus and its upcoming superjumbo A380 aircraft.

Boeing, which up to now has had the world’s largest airliner in the 747, will be developing a bigger, more fuel-efficient version of the jet that helped it dominate the global market.

Yesterday’s announcement seeks to clip the wings of the European group, which is in the process of launching the A-380, which will be the world’s largest passenger aircraft and be capable of holding up to 555 passengers.

The move will help Boeing counter Airbus’ move into the jumbo jet market and could help the US manufacturer regain the top spot in civil aviation, which it lost to Airbus in 2003.

Boeing said its new 747-8 would be offered as a freighter and passenger jet.

The first orders came yesterday for 18 of the planes, worth some $5 billion. Ten will be sold to Luxembourg-based Cargolux and eight to Nippon Cargo Airlines of Japan.

Boeing said compared to A-380, the new plane “will offer 22 per cent lower trip costs” and be “about eight per cent less per seat mile to
operate.” — AFP

Beijing, November 16
Airbus signed a $ 500m deal with China, the biggest so far, between the European aircraft maker and the Communist giant, for expanding the A-320 wing production, the state media reported today. The deal with the China Aviation Industry Corporation was for enhancing ties to produce wings for A-320 aircraft, the ‘China Securities News’ reported.

This is so far the biggest deal signed between Airbus and China’s aviation industry, the report said. Five Chinese aviation companies directly take part in the production of spare parts for Airbus.
— PTI

Washington, November 16
Pfizer has said it has discovered an anti-smoking drug that mimics nicotine and is considerably more effective than zyban, the only prescription anti-smoking medicine available on the US market.

Discovered and developed by Pfizer, varenicline tartrate is described as “the first in a new class of potential smoking cessation therapies,” the company said yesterday on its website.
— AFP

Mumbai, November 16
Madura Garments, a division of newly merged entity Aditya Birla Nuva, will invest up to Rs 60 crore in the next two years in rolling out at least 22 flagship stores for its premium menswear brand, Louis Philippe.

Currently, it has 23 such stores in four major metros, Bangalore and Pune, while the latest flagship store of Louis Philippe being its largest, measuring 4,500 sq ft area in Mumbai.

Speaking on the occasion of the launch of its latest store, Madura Garments Group Executive President Vikram D. Rao said the company is also in the process of evolving the brand into a one-stop destination for everything in the male wardrobe.

Replying to a question, Mr Rao said the company is now scouting for licensing agreements with players in the men’s accessories business abroad like Italy to add to the range of accessories currently on offer in the brand.
— UNI

Biocon pactMumbai, November 16
Biocon Ltd said today it had signed a product licensing agreement with Bentley Pharmaceuticals Inc, a technology-based speciality pharmaceutical and drug delivery company, for Bentley’s intra-nasal spray formulation for administering insulin. The licence agreement covers 85 countries granting the company exclusive as well as co-exclusive rights to develop and market throughout Asia, Africa and West Asia.
— PTI

Low-cost PCBangalore, November 16
Acer, one of the world’s top five branded PC vendors, today announced the launch of its Acer Power-290 series PC for the SMB market, based on Intel’s latest Pentium 4 processor technology. Available at Rs 20,999, Acer Power-290, uses the Pentium 4 Processor 2.66 Ghz (J MB L2 cache, 533 Mhz FSB) 910 GL chipset, for increased power and excellent performance.
— UNI

Forbes ‘best’Mumbai, November 16
Hyderabad-based Nagarjuna Construction Company Limited has been included in the Forbes Asia “Best under a Billion’ list of 200 companies in the Asia Pacific Region. Twenty Indian companies have been included in the Forbes List, of which Nagarjuna Construction is the only construction company.
— PTI

Enron CEOHouston, November 16
The turnaround expert who led Enron through one of the most complex and expensive bankruptcies in history said that his work was worth $ 25 million. “I think this has been a remarkable success,” Mr Stephen Cooper told US bankruptcy Judge Arthur Gonzalez at a hearing in New York. The hearing concerned his request for a “success fee” as well as the final fee and expense requests from professionals involved in the massive chapter 11 case. Cooper has been Enron’s interim CEO since January 2002.
— AP

Export orderMumbai, November 16
Power and automation major Siemens Ltd said today it had bagged an export order worth Rs 1,000 crore from Qatar. The order has been awarded to the company’s consortium consisting of Siemens AG, Germany, and itself, Siemens said.
— PTI